In a new Form 8-K filed today, Strategy detailed a high fall in the carrying value of its digital assets during the fourth quarter as a result of the decline in the price of the most popular cryptocurrency. It also revealed severe unrealized losses related to its bitcoin holdings.
Sharp Decline in Digital Asset Valuations
The corporation reported a $1.55 billion deferred tax advantage and a $5.40 billion unrealized loss on digital assets for the whole year 2025. There was a significant increase in volatility throughout the fourth quarter. For the three months ending December 31, Strategy reported a $5.01 billion deferred tax profit in addition to a $17.44 billion unrealized loss.
Fourth-Quarter Volatility and Annual Impact
Before declining and closing below $90,000 by the end of 2025, Bitcoin closed over $124,000 in early October. But since January, it has increased, and it is now selling for more over $93,000. Strategy reported a $2.42 billion deferred tax obligation and possessed $58.85 billion in digital assets as of year-end.
Bitcoin Price Movement and Balance Sheet Position
Up to the beginning of 2026, Strategy kept increasing its bitcoin holdings. The corporation purchased 1,283 bitcoin at a total cost of $116.0 million between January 1 and January 4, increasing its total assets to 673,783 bitcoin at a total cost of $50.55 billion.
Continued Bitcoin Accumulation in Early 2026
Its at-the-market stock offering mechanism allowed for continuous sales to finance purchases. According to the report, Strategy’s stock sales generated $195.9 million in net revenues between December 29 and December 31 and an additional $116.3 million between January 1 and January 4.
Stock Sales Used to Fund Digital Asset Purchases
Additionally, as of January 4, the corporation reported having a $2.25 billion U.S. dollar reserve, which it utilized to fund interest and preferred dividend payments.
Liquidity Position and Financial Flexibility
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